Analysis: Stardoll is a site where users can dress up celebrity dolls with different virtual clothes. It's free, unless you want a larger selection of clothes. The site says it has 16+ million users and targets 7-17 year old girls. The company has had over $10 million in funding to date.

We estimate that Stardoll will generate about $30 million of high-margin revenue in 2008. Applying a 15X multiple, we estimate that the company is worth about $450 million.